Hawala, an informal method of transferring money without any physical money actually moving, is a system that has been around for centuries. Originally used by traders in the Middle East and Asia to avoid high taxes and tariffs on goods being transported across borders, Hawala is now used all over the world as a way to transfer money quickly and easily.There is no actual currency moving through the system; instead, Hawala relies on trust between brokers who act as middlemen. When someone wants to send money using Hawala, they will contact a broker in their home country who will then find another broker in the destination country who can complete the transaction. Fees are usually very low (or even nonexistent) compared to other methods of transferring money such as bank transfers or Western Union.While there are many benefits to using Hawala for transferring money, there are also some risks involved. Because it is an informal system with no official rules or regulations, it can be difficult to track down brokers if something goes wrong.Additionally, because hawaladars (the name given to those who operate within the hawala system) rely on trust rather than paperwork or contracts, it can be easy for someone to cheat another person out of their hard-earned cash. Despite these risks however, hawala remains one of the most popular methods of transferring money around the world due not only its convenience but also its affordability.
